Colombia - Economic growth : problems and prospects (Vol. 5 of 12) : Agriculture, fisheries and forestry

RETURN TO RESTRICTED REPOIRTS DESK Report No. WH-200a WIITHI N FILE cLRA CO01 PeY ONE' WEEK This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it -be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ECONOMIC GROWTH OF COLOMBIA: PROBLEMS AND PROSPECTS (in XII Volumes) VOLUME V AGRICULTURE, FISHERIES AND FORESTRY November 1, 1970 South Am.erica Department  CURRENCY EQUIVALENTS (Certificate Market Selling Rate of Exchange) End 1968 1 US$ = 16.91 Pesos 1 Peso 2 US$0.05913 End 1969 1 US$ = 17.90 Pesos 1 Peso = US$0.05586 End-March 1970 1 US$ = 18.20 Pesos 1 Peso = US$0.05494  AGRICULTURE Table of Contents Page I. INTRODUCTION 1 II. SALIENT FEATURES 3 Agricultural Exports 3 Import Sub3titution 4 Livestock 4 Policies Related to Minor Exports and Import Substitution 4 III. REORGANIZATION OF THE MINISTRY OF AGRICULTURE 6 IV. THE PROBLEMS AND POTENTIAL OF COLOMBIAN AGRICULTURE 8 Access of Farmers to Land 8 The Problem of Low Yields 12 The Availability of Modern Inputs 14 Research and Dissemination of Knowledge 22 Price Policy 24 Credit 28 V. GROWTH PCTENTIAL BY CROP AND LIVESTOCK SUBSECTORS 31 a. Crops 31 Cotton 31 Sugar 33 Bananas 34 Cacao 36 Tobacco 37 Fats and Oils 38 Rubber 40 Rice 42 Corn and Sorghum 44 Wheat and Barley 47 Potatoes 52 Traditional Crops 53 b. Livestock 54 Beef Cattle 54 Beef Consumption 56 Beef Markets and Marketing 57 Trade Bqlance of Livestock Subsector 57 Dairying 57 Sheep 58 Hogs and Poultry 58 Future of Livestock Industry 59  -2- Page c. Fisheries 72 d. Forestry 73 VI. UNEMPLOYMENT AND POLICIES FOR GREATER LABOR ABSORPTION IN AGRICULTURE 76 The Problem 76 Proposed Measure for Increasing Employment in Agriculture 76 VII. FUTURE POSSIBILITIES AND PRIORITIES IN COLOMBIAN AGRICULTURE 82 APPENDIX 1 - Statistical Tables APPENDIX 2 - Banking and Credit APPENDIX 3 - INCORA and Agrarian Reform APPENDIX 4 - Review of on-going Preinvestment Studies in Agriculture APPENDIX 5 - Proposed Pre-investment Studies  I. UTRC:D'CT TOri 1. Gov-r-l!.ent r-jolicies in -rri.uVtcro fte surmrmarized in Volume I. i, -' r> -'is .sse ti detail. stiantei as veing emnl.oyed. successes :.nin rd ;id - 'r ens whIc]l stJi 1. n ed attenztion if Colombian 3 aricu1tiire 's to :k e ,Tr ov7ir< t,tr`iii 1on KtC the n-ticn'e oror-all developnent. 2. The annual rate of agricultural growth has increased frorn rates approximating 3 percent over -any years to an average of 5.2 percent for the past three years. Th-s reflects an increase in production of basic food crops tc; keep pace with a population growth of approximately 3.2 percent plus additional growth in production of crops and livestock for export and import substitution. 3. It is quite possible that Colombia is ready to enter into a period of accelerated gro-wth. With the help of the international coffee arreement, which Colombia is supporting to the maximum, there are possi- bilities that world coffee stocks can be maintained at reasonably low levels for some years to come, assuring favorable prices. In the mnean- time, goverlnment policy to expand minor exports appears to be succeeding. rhe principal measures taken by the government have been a 15 percent ex- port subsidy, a heavy infusion of credit for export crops, especially cotton, and direct intervention of the government marketing agency, IDEMA, in the purchase and foreign sales of farm produc-ts, principally rice and catt le. l. The main products involved in recent growth and their annual growth rates over the past years are: seed cotton 16.0, soybeans 16.3, sorghim! 22.2, sugar 7.8, sesame 7.8 and rice 5.5 (see Table 3, Appendix 1). If these overall growth rates are to continue and if the output of the other crops is to expand, Colombia faces several major problems. The most serious is the generally high cost per unit of production. In part this is a result of high cost systems for producing and distributing ijodern inputs - a fairly typical situation in developing countries. Miore than this, however, it is the inefficient combining of inputs and husbandry resulting in very low yield levels for most crops. 6.. Several. measures are now being taken to correct this shortcoming. The niain ones are a tripling of the agricultural research budget and an immuniization program aimed at eventually eliminating aftosa from the cattle population. Addeci investments are also scheduled for agricultural extension. The problems of distribution of wealth in agriculture are serious because of the large niumber of very small holders. Of the approxirmately 1.5 million farm families, more than 50 percent have under three hectares of land which, with the exception of certain labor intensive crops, is riot sufficient to provide an adequate level of income. Many of these fami- lies supplement their incomues with jobs outside of agriculture or by working as laborers on larger farms. This is particularly/trud in the older settled areas where traditional systems of large extensive livestock holdings  -2- still remain in the face of a rapidly growing population. In the newer lowland areas where land availability is not a severe constraint, the problems of coping with wet tropical conditions with traditional hand methods limit the area which can be handled with family labor alone. Typically the pattern which develops is a shifting agriculture which provides only a low subsistence level of living. 8. To transform this mass of part time laborers and subsistence farmers into productive family farm units requires the injection of considerable technical assistance and capital. The experience to date of the Colombian Agrarian Reform Institute (INCORA) and other agencies shows the relatively high cost per family aided and the relatively small number of farmers who can be effectively reached. 9. The Government has taken several measures which have simultaneously increased production and helped the small holder sector, but so far only a emall number of farmers has benefited from these measures. The operations of the Coffee Federation are one notable example of progress achieved by providing an assured market for small holder production. Another example is the work of the Caja Agraria in providing credit and modern inputs for small potato producers. Additional work opportunities have also been provided by the government decision not to allow the importation of mechanical cotton pickers. Some progress has also been made by reallocating land resources and colonizing new lands. The income and employment problems which remain are very large, however, and sustained efforts on a substantial scale are needed to solve them. The rural population, most of it poor, accounts for almost one-half of the total. Further, it is estimated that a 1.8 percent annual increase in agricultural employment is needed during the next 15 years. It is in this perspective that future agricultural policies, as well as overall policies, must be viewed.  II. SALIEINT FEATURES 8. Agricultural policy objectives and the percentage of public in- VEestment in agriculture have remained essentially as outlined in the 1968 Bank report (WB 188a). In 1969, the agricultural sector /c tributed 30 percent of the GDP. The agricultural GDP has grown at over 5 percent per year for each of the past,three years, up from an annual rate of 3-3.5 percent in earlier years.- 9.. This increased rate of growth has been accorrplished at the same time thaL reliance on coffee exports has been reduced. While coffee has rt.friaiined the country's major export, as a proportion of all agricultural eXports, it has declined from over 90 percent prior to 1965 to 75 percent in 1969. 10. At the time of the 1968 Bank report (WH 188a) the diversification of exports was of immediate urgency because of the large world surplus of coffee and the related falling prices. Since then, measures taken by Colombia and other exporting countries to reduce coffee plantings, plus 1the serious frost in Brazil in July 1969, have drastlically changed the ex- port picture for the near term. I-L. Colombia's wide range of environmental conditions provides good natural pastures for cattle grazing, and gives scope for great diversity of basic food and cash crops. Breakdowns of the growth by crop and live- stlock items over the past two decades are provided in Tables 1, 2 and 3, Appendix 1. The output of traditional food crops has increased at a rate similar to the population growth of 3.3 percent while cotton, sorghum and thie oil seed crops have been increasing much more rapidly. 12. The data show that most of the increase in production may be at- tributed to an expansion in area rather than to greater productivity. The ii.rportant exceptions are cotton, sugar, rice and tobacco which have shown notable increases in yields over the past decade. The yields of the basic food crops -- corn, yucca, plantains and potatoes -- have remained rela- tively static. A,ricultural Exports 13. The major export continues to be coffee, valued at US$353 million in 1969. However, the various "minor" agricultural exports have steadily increased their combined earnings from US$2l4.5 million in 1960 to US$119.7 million in 1969, accounting now for 25 percent of the agricultural export earnings. 1/ Throughout this report the terms "agriculture" and agricultural sector" shall be understood to include livestock, forestry and fisheries. 2/ The National Planning Department shows the following growth rates for agricultural GDP: 1967, 5.1 percent; 1968, 6.8 percent and 1969, 5.5 percent.  L4. Table l shows the favorable growth record of agricultural exports by commodities. Exports more than quadrupled during the decade fromn 1960 to 1969. This growth in rninor exports is expected to continue over the next few years. Whether the rate increases or declines will depend on pol- icy decisions related to exports in general and to incentives f'or specif'ic products. Import Substitution 15. Table 5 in Appendix 1 shows the changes in principal agricultural imports during the 196o-67 period. The main achievement here has been to avoid any notable growth in overall agricultural imports. T'he need to im- port vegetable oils and oil seeds has been almost eliminated. ilice too was occasionally imported in quantity in the past and is now in plentiful sup- ply. However, wheat imports continue to grow and could becomne an importarnt drain on foreign exchange if adequate measures are not taken tc, increase national production. Cocoa still represents several million dollars annually of exchange loss and Colombia has ideal natural coniditions to become self- sufficient. Natural rubber and paper pulp fit in the same category. Possi- bilities also exist for replacing the imnports of wool but it appears that little progress is being mnade. For the future the oil seed picture looks especially promising with annual growth rates in soybeans and cotton seed of over 19 percent during the past decade and with an even higher growth rate in palm oil, which started from a much lower base. Although import sub- stitution alone, in general, does not offer the same field 1"or expansion as exports, in certain products, especially those produced in the tropics, it is feasible that Colombia could go from an importing situation to one of important exports. Special study should be given to cocoa. natural rubber and paper pulp. At the same tirne special attention shoubLi be given to in- creasing wheat yields and to developing an efficient sheep industry f'or wool production. Livestock 16. Poultry and hog production have been growing at a very slow rate compared to other countries which have reached the stage of development of Colombia. Apparently the biggest hindrance to expansion is the high cost of feed grains. The present growth rate in sorghum production suggests that it might play an important role in solving this problerm. SorghwUn is of approximately equal food value to corn and present yields are running almost double those of corn. During the 1960-64 to 1969 period, the area in sorghum and total sorghum production have quadrupled. It is very pos- sible that the next decade may see the development of a strong poultry and hog industry in Colombia based on low cost sorghun and the expansion of oil seed production yielding as a by-product high protein cake for protein sup- plementation of livestock rations. If this happens, higher internal meat consumption plus the freeing of additional beef for export can be expected. Policies Related to Minor Exports and Imports Substitution 17. Table 6 in Appendix 1 compares the gro-ith of exports and imports showing a growth rate of 19.3 percent in minor agricultural exports against a growth rate of 1.4 in agricultural imports. It must be acknowledged that  -5- all of those products started out from a very small base. Of special importance, however,, have been government incentives for encouraging ex- ports, especially the 15 percent direct fiscal subsidy. During this t.ij,e, there has been an important change in attitude of government pol- icy away fromn strictly import substitution to export promotion. 1.&. Exchange rate policy may have had differing effects over time as it appears that the exchange rate has been over-valued in varying degrees during most of the past decade. This aspect will be covered in other parts of the general report. 19. Recently price support policy has played an important part in stimulating production of certain crops, especially rice. The best grade of paddy has had a support price of 2,000 to 2,050 pesos during each of the past three years. At the 1969 exchange rate this was roughly equi- valent to US$115 per metric ton, somewhat above the world price. A sur- plus has now accumulated and it has been necessary to dispose of part of it at a loss to the price support agency (IDENA). This was handled in two ways. Rice was sold to Chile and Peru under bilateral agreements above the international market price. In addition IDEMA imports certain foodstuffs which are sold at high prices in the domestic market and the profits are used to balance the losses in export operations. 20. Obviously exchange rate policy and export subsidies are going to be igportant determinants of the level of minor exports in the years ahead. However, the comparative advantage of Colombian producers depends even more heavily on efficiency of production. Their costs of production deo?end on the level of prices for inputs and the cost of credit to pur- chlase these inputs as well as labor costs and the productivity of labor. lntstingly enough, Coloimbia has built its major export agricultural sector -- coffee -- on small producers. The new minor exports, on the other hand, hi-herto have been based largely on capital intensive enterprises rather tihan the labor intensive enterprises involved in coffee production.  III. REORGAIK1ZAmIOi\ (F THE NrAD4IbTRY OF AGRICULTURE 21. Prior to 1968, public investrnent in the agricultural sector was channeled through a multi-tude of separate organizations, many responsible for only one particular crop or function, such as livestock credit, crop credit, agrarian reformr, research, extension and the like. Because of the weak position of the M inistry, the successful -rowth oi a program usually required separating it from the Ministry. This has been markedly cianged with the l568 reorganization. 22. By two new decrees, the Ministry was not only made fully respon- sible for the country's agricultural and livestock planning, :or drawing up and implemrienting a comprehensive development policy, hut for the control, regulation and coordination of the programts of the different; organizations which function within the agricultural and livestock field. As a meimber of the National Social and Econorriic Council, made up of the President's Cabinet, the iIinister of Agriculture also has an important role in prico policy, import restrictions, and measures to encourage or restrict the production of certain coD-modities. 23. In formulating policy, the rlinister is advised by a Nlational Agricultural Council and there is also an Executive Coriimittee made up of the heads of the seven maajor organizations within the agricultural sector, namely the directors or general manager of each of the foll cwing: (i) Livestock Bank (Banco Genadero) (ii) Farm Credit Bank (Caja Agraria) (iii) National Coffee Growers Federation (Federaciun Nacional de Cafeteros) (iv) Agricultural Research and Extension Institute (ICA) (v) Agrarian Reform Institute (DICORA) (vi) Institute for Crop and Livestock iiarketing (IDE;M) (vii) Institute for Renewable Natural Resources (L4DEHENA) 24. The function of this Executive Coimnittee is to analyze all de- velopment plans and budgets, advise on credit and mlarketing policies, review the research program, and generally assist the Minister in the exe- cution of his various functions. This coruiittee meets at least once a month. 25. The Minister's office includes the office of a Vice-MirLister, and the office of a Secretary General. Under them are sections dealing with planning, judicial matters, technical supervision, and national peasant organization. 26. The planning office of the Ministry is intended to play a key part in formulating agricultural policy. The role of this office is to coordinate the efforts of the planning sections within each of the agencies associated with the Ministry and serve as their contact point in relations  -7- with the agricultural section of the National Planning Department. In practice there are still problems in making this functional, but it would appear that the basis has been laid for effective agricultural planning at the national level. 27. In addition to tho seven agencies mentioned above, the following are attached to, or form part of, the lMlinistry of Agriculture: (1) The 'eather and Water Resources Service; (2) The Fund for Development and Diversification in the Coffee Zones; (3) The regional autonomous develop- ment authorities for the Cauca Valley, Quindio, Choco and Sabana of Bogota; (4) INAGRARIO (storage program operated jointly by IDEIA and the Caja Agraria); (5) The Coffee Producers Bank; (6) VECOL (a company to produce -veterinary products); and (7) COFIAGRO (Financial Corporation to Promote Crop and Cattle Exports). The first three of these are public agencies, -the next three are semi-official commercial or industrial agencies and the Last is joint public-commercial corporation.  IV. THE PROBLE-1 AND PCTEIETIAL OF COLOIBIAIA AGRICUIJTURE 28. In spite of the output growvth attained, i n certain conmriiodities, and the reorganization of the Miinistry of Agriculture, the agricultural sector has several serious problems. The main problems shared by -he majority of Colombian farmers are: (1) uneconomLically small farns and3 difficulty of access to additional land; (2) lack of locally ,ested: in- formation on optimal use of modern inputs; (3) difficulty of access to credit and modern inputs; and (4) inadequate mrarkets ana wia ttractive relationships between cost of inputs and priceE of farm products. Low yields of most crops are one result of' this combination o[' iactors. 29. In this section we will attempt to analyze these problems, report .what is being done to solve them and to the extent possible, mav-e sugges- tions on additional measures which might be taken. Access of Farmers to Land 30. Total land resources in Colombia amount to 113.8 millionl hectares. The best indication of land use on this area is the 1960 agricultural census which covered 46.7 percent of tne national territory - an area wqhicrl con- tained an estimated 97.5 percent of the population. A total of 1,209,663 farmn units were enumrerated, withl a total of 27,372,0001 hectares, or jus-t 21t percent of Colombia's total area and only 51 percent of the area included in the census. The land use on the farms enunerated in the 11)0`o census was as follows: Hectares (000) PercentagCe Perennial Crops 1,458 5.3 Annual Crops 2,015 7.3 Land under f'allowS 1, 581 5.8 Grazing land 14,626 53.6 Forests 6,396 23.4 Other types 1,296 It.6 TOTAL 27,372 100.0 31. The pattern of land distribution by size of farmii is shown in Table IV.1 with data from the 1960 census. This census was carried out just before the passing of the agrarian reform law of 1961 and consequently does not reflect any changes during the past decade. However, the DANE (Central Statistical Office) sample survey for 1968 shows a growth of 300,000 in number of farms and an increase of 2 mil;'ion hectares in total farm area. The new farm area comes principally fro.m colonization and to a minor extent from redistribution of large holdings. Consequently, the majority of new farms should be in the 10 - 50 hectare category. 1/ Not farmed for at least 5 years.  -9- The fact that the average additional holding is only 6.7 hectares (2 million hectares divided by 300,000 farms) probably reflects the fact tat e1i:tablished farmers have continued to subdivide small holdings. Table IV.1: PATTERN OF LANI) DISTRIBUTION BY FARM1 SIZE, 1960 F:irm Size Numiber Total Area Percent of r.hectares) of Farms Pe rcent (hectares) total area Less than 1.0 298,971 24.7 131,993 .5 L--3 308,352 25.5 545,964 2.0 3-*5 150,132 12.4 561,019 2.0 ',--l0 169,1145 114.0 1,164,749 4.3 10-20 114,231 9.4 1,572,076 5.8 20-30 44,049 3.6 1,043,554 3.8 30-50 42,740 3.6 1,595,147 5.8 C}-100 39,990 3.3 2,680,471 9.8 100-500 36,010 3.0 6,990,.471 25.6 50C)0-1000 4,1141 .3 2,730,764 10.0 ovier 1000 2,761 .2 8,321,619 30.14 TCEATL: 1,209,672 100.0 27,337,287 100.0 Source: 1960 Agricultural Census. 32. There is a strong correlation between size of farm and per- centage of tlle farin in grazing land (see Table 7 in Appendix 1). Only 14 percent of the smallest farms are in pasture, whereas the corresponding figure for the largest farms is 78 percent. 33. Cert:n. crops tend to be concentrat;ed on small holdings and others on large holdings. Evren on the large holdings, only small areas of certain crops are grow,n. FIor exarnple, the average area in yuca on holdings of 200 nectares or more is only 3 hectares; the average area in plantains is under 4 aectares. In contrast the average area of corn grown on these laiger hoLdings is over 12 hectares, the average rice area is nearly 25 hectares, barley is 44 hectares and cotton is 83. The yuca and plantains are grown as food crops for farm labor, whereas these farrners grow the other crops as comaercial enterprises. Taoles B and 9 of Appendix 1 show crop distri- buzion by farm size. 314. Although there is no particular technical reason why yields should be higher on large farms, this commercial orientation of production, alonig with easier access to credit and modern chemical inputs results in raither pronounced correlations between size of farm and yield in certain crUs (see Table 10 of Appendix 1). 35, Colombian policy on land distribution is carried out by a large public investment through -the Colombian Institute for Agrarian Reform (ITCORA) wshiicht became operative in ;L'G2. The major results achieved by  -10- INCORA from 1962 to 1970 may be summed up as follows: Land Titles. INCORA has issued a total of about 90,000 titles for 2.7 million hectares of farm land. Most of the titles issued have been for small and medium-sized farms, the average size being about 30 hectares. Such titles are important in increasing productivity as they can be used as collateral in obtaining credit for agricultural production and other purposes. Colonization of Government Lands. INCORA estimates suggest that it has participated in one way or another in opening up nearly 1 million hectares for colonization. Flood Control, Drainage and Irrigation Projects. INCORA has made infrastructure investments in some 0.6 million hectares. About 0.3 million hectares have been fully developed and are in production. In addition, INCORA and regional corporations are involved in pre-investment studies of about 1 million hectares of land for drainage and irrigation projects. Agricultural Credit. This has absorbed more than one-third of INCORA's total investment and the majority of the agency's personnel is involved in this activity. Supervised credit provides the capital and technical assistance for establishing and developing farms, for settlement or colonization and parcel- ing as well. Funds for the supervised credit programs have been provided primarily by US-AID loans and now by a World Bank loan of US$17 million from which about 2,500 farmers will benefit. 36. In general it can be said that the INOORA projects are having a positive effect on crop yields and farm income for the families which they affect. However, the number of farmers helped directly is still very small. It should be clearly stated that the basic goals of more efficient alloca- tion of land resources as specified in the agrarian reform law are still not being achieved. More than half of the farm families of Colombia still have less than 3 hectares of land and nearly two-thirds have less than 5 hectares. For most families and most crops 5 hectares can be considered the minimum of crop land needed to earn enough to support some basic level of living. No matter how ambitious a man or his family may be, they must have some basic elements of production with which to begin -- a certain amount of land is the firet requirement and then access to modern inputs and credit -- in order to produce efficiently. To efficiently farm more than 2 or 3 hectares under wet tropical conditions, a iarmer must have more than a hoe and a "machete" -- at least the use of draft animals or the use of tractor services. I/ See paragraph 90, page 24.  -11- 37. The reasons for the lack of success in providing a more adequate land resource for the landless and the very small holders are fairly clear. Although Colombia has a relatively good endowment of agricultural land, h.istorically Colombiars abundant rainfall caused serious drainage problems in the valleys and lowlands. As a result, human diseases - especially malaria and yellow fever -- caused serious difficulties and the population tended to concentrdete in the Andean highlands. Eventually cattle grazing on an extensive scELle spread into the river valleys and northern plains. This enterprise yields a profit with a minimum of supervision and therefore remains popular with absentee land owners. However, the rationale for this type of holding has changed. In the past few decades medical science has succeeded in bringing malaria and yellow fever under control. The chemical industries are producing insecticides, fungicides and herbicides to control the main limitations to crop production. Civil engineers have learned how to drain the lowland areas and thereby convert second class grazing land into first class crop land. 38. In spite of these changeis, for political reasons the land alloca- tion which took place during the past centuries has been difficult to change. Consequently the majority of the farming population continues to be concen- trated on tiny mountain farms where the small size of their holdings also 1.1mits their access to credit and maodern inputs. 39. One of the reasons for moving slowly in reallocating land resources hLas been a fear that reallocation would lead to reduced production per unit area. In fact it is true that efficient commercial crop farms in Colombia produce higher yields than present small holdings. On the other hand, the yields on small holdings in the INGORA projects, where adequate technical assistance and credit are provided, compare very favorably with large commer- cfial holdings (Table 10, Appendix 1), pointing up the fact that the essence of modern efficient agricultural production tends to be more in the nature of yield increments obtained through the use of improved seed, chemical fertilizers, insecticides, herbicides and fungicides, than in labor substitution. Good management is essential for this. 40. In part, too, adequate land utilization is being hindered by land speculation, which is in turn facilitated by inadequate land taxation. Colombian authorities are cognizant of this problem and have begun to take measures to correct this through combined efforts of the National Cadastral Institute "Agustin Cadazzi" and INCORA. At the time of the mission's visit tc Colombia in February and March of 1970, an official announcement to rural land owners was being publicized th.roughout the country by INCORA to the effect that accordcing to decrees 2895 of 1963 and 181 of 1964 all owners of rural land of more than 100 hectarets or with value exceeding 20,000 pesos BLUst estimate the value of the land and make a formal declaration at the local municipal treasurer's office. The announcement went on to explain that in ca.se the land should be subject to expropriation, this declared value would be the upper limit of possible indemnification. At the same time it cautioned against over-valuation as the cadastral institute would make the final deter- mination of value. This measure appeared to be receiving widespread support.  -12- 41. The need for this kind of ireasure is sugggested in Table 11 of Appendix 1 which shows a strong negative correlation between farm siz:e and assessed value per hec Lare. Although one interpretation u'ihese figures rnay be that the quality of land in the larg,e holdings is ex- tremely poor, it appears that in fact the soil and climate endownment of' much of this land is good and that wha' is needed is well-directed pres- sure to bring the land into greater productivity. 12. INCORA still faces serious problems in carrying out its broad charter. The land resources which it has manipulai ed up to now ar e largely those which,for one reason or another, have been ceded 6y previ- ous holders because it would be unprof'itable for them to make the ne-cessary, investments to bring the l3nd into production. Conseciueritly, mmucil Ofl the land held by INCO,'A is made up of marginal lands, whereas extensive good land resources continue to be uLrdelnutilized. The reasons for this ore found in the interpretation of the ag,rarian code. Only in thie case of ir- rigation projects has it been possible for INCORA successfully to reallocate land. In all intended expropriations based on under-utilization, the legal action must first be settled in the courts. Such actiotis Lake years in process and for this reason INCOrLA has made liLtle attempt to prove uider- utilization. The end result is that instead of looking at the entire land resources of Colombia and attempting to arrive at rational development plans, INCORA has been unduly limited in its reallocation of land resources. Gowze- quently, decisions have sometirnes had to be made in terms of choosing the least expensive of several high cost alternatives. Colombian authorities are now seriously discussing possible changes in the agrarian laws to rec- tify this and other limitations. 83. In supporting development projects it appears that in somne .c;ases external lending agencies may also have had to decide among high cost proj- ects, rather than choose among the best alternatives for improving !'oduc - tion and productivity. One example of a promising area for development which appears not to have been considered is the extrermely fertile 300,000 hectare Cauca Valley which lies in the midst of the heavily populated central area of Colombia and still has approximately half its area dedicated to extensive livestock Droduction. The explanation given is that drainage on many of these lands is inadequate, and for this reason it is necessary to keep themn in extensive livestock production. The next logical step would be a feasi- bility study to determine what it would cost to pu-t in a drainage system for the Cauca Valley. If reclamation can be shown to be economically justified, a drainage project, if advisable combined with irrigation, could be estab- lished and land reallocation could then proceed under relevant provisions of the agrarian reform law. The Problem of Low Yields 44. Average yield levels for most crops in Colombia are fairly low. Yet the potential for high yields clearly exists. Table IV.l (page 13) sets out the range in national average yields for the mrore important crops and for comparison also gives yields achieved under good management.  - L3 - Table IV.2 CURRENT RANGE IN CROP YIELDS AND POTENTIAL PRODUCTIVITY UNDER IMPROVED MANAGEMENT Yield Range Range in National Average Yields achieved V 1965 - 1969 under proper management- (kgs/Ha) (kgs/Ha) ANNUAL CRiOFS Commercial Experimental Cotton - fibre 440 - 600 1,100 Cotton - seed 760 - 1,000 2,700 Tobacco 1,600 - 1,900 Corn 1,000 - 1,100 3,500 7,000 Whea1; 900 - 1,300 2,800 4,500 Barley 1,560 - 1,950 3,000 5,900 Rice (irrigated paddy) 2,900 - 4,200 4,500 6,000 Soybeans 1,500 - 1,800 2,000 2,500 Sesame 650 - 800 EbanE 520 - 5702/ 1,500 2,200 Fbtatoes 10,100 - 11,500- 40,000 60,000 Yuca 5,600 - 5,900 FRENNIAL CROFS Coffee 550 - 600 5,000 Sugar (Centrifugal) 6,000 - 7,380 10,000 40,000 Sugar (Panela) 2,300 - 2,900 Cacao 450 - 470 800 1,000 Bananas 11,200 13,300 Plantain 6,300 - 8,100 Palm oil 3,000 6,000 1/ D3ta from "La Brecha en la Productividad Agricola en Colombia,' ICA 1969 The Ministry of Agriculture - IDEMA series are used here. However, it should be mentioned that Caja Agraria data show a range of 6,900 to 7,300 and the DANE sample shows 6,200 to 7,100 for the same period. The I)EMA series may be somewhat biased in favor of commercial sales.  -14- 45. There are a variety of reasons for the relative lack, of success in raising average yields. First, a large propo&Aion of crop lanJ is under traditional crops, produced for subsistence rather than for mnarket, and the level of husbandry has been low. On these crops there has becrl little use of improved varieties, chemical ferLilizers, herbicides, i)esLL- cides and fungicides. The majority of the grazing lancis still (do not beile- fit from introduction of imnproved species or fertilizatiorl and tus their carrying capacity is low. However, beginnings 'nave been mnade in the use of advanced technology, particularly in the producciorn of crops to be marketed, either internally or abroad. 46. The knowledge problem related to yields is twofold: (1) t,o determine the optimum combination and level of inputs for specific soils and climates, and (2) to gain general acceptance of these sets of practices among farmers. Knowledge, huowvever, is not enough in itsel to raise prc- ductivity. The inputs needed -to achieve this, the mechanical equipmrient, the fertilizers, the improved seed, the pest control .;aterijls, allrequire finance, and witlhout credit these inputs carnoL be purchased. 47. Another constraint that still hiinders the full application ozT inI- puts is the price of these in relation to the returns they yield, and the availability of the inputs at the right time in the right place and in suf- ficient quantities. There is inadequate information at present on ohether supplies of fertilizer and planit protection products are alnjays readily available at the various distribution centers. 48. Finally there is the incentive that prices can give tc) increasing output. Price supports have been used for some tim,e to iniduce investmentt and obtain teclhical change and t4his aspect will be dealt witih in more detail in a later section. Availability and Use of NISodern Inputs 49. There are six principal inputs that may serve as indicators of the degree of modernization that Colombian agriculture has achieved: farmn machinery, improved seeds, herbicides, fungicides, insecticides, and ferti- lizers. 50. Farm ikIachinery. To move from a traditional low income subsistence agriculture to a more productive level requires some form of mechanization to enable the farmer to handle sufficient land to produce a reasonable income. As a minimum, draft animals or tractor services will be required. The imports of farm tractors have varied considerably from year to year as can be seen in the following data:  Year Number 1954 2,37! 1955 2,493 1956 2,239 1557 852 1958 1,565 1959 1,844 1960 2,428 1961 1,930 1962 1,905 1963 1,137 1964 2,000 1965 1,540 1966 1,756 1967 1,764 1968 2,989 51. In March 1970, there appeared to be no shortage of tractors, in fact, conpetition among machinery dealers was apparently resulting in a certain amount of price cutting. The import duty on tractors is at present only 2 percent. In value terms, tractors accounted for 77 percent of-the US$l7.4 million imports of farm machinery and equipment in 1968. Colombia is expanding production of disc harrows and inany other farm implements. One company now appears ready to initiate product-ion of a 12 fP tractor developed in cooperaticn with ICA for use on small holdings. At present only 3.6 per- cent cf the farius are mechanized, although the percentage of the area operated with tractor power is much higher. L. -proved Seeds. The importance of quality is well recognized and the agencies responsible for developing, testing and dlistributing better seed have greatly expanded output during The past decade (see Table 12, Appenudix 1). 53. The basic research work for developing new varieties or intro- duc.ing themn from abroad has been done by the research institutes. The early wor;: in corn and wheat was assisted by scientists of the Rockefeller Founda- .iDll. In 1953, the Cnca Agraria tookc on the task of multiplying and distri- cuitling the first, improved seed of wheat and corn. Beans were added in 1956 and the use of these lccally developed improved seeds has slowly expanded. Because of the highlay organized nature of the malting industry, an estimnated 98 iercent of all barley area went into a new variety the year that it was released for general use. 'When local rice breeding work resulted in improved va:rieties adapted to irrigated production, acceptance grew from 2.5 percent in 1961 'to 55 percent in 1967. jL8. In the cases of soybeans, ,rain sorghum and cotton, good varieties fro,, abroad were found to be well adapted in Colombia. Subsequently, local seed production was begun' and now accounts for most of the seed planted. The Caja Agraria continues to be the main distributor of seed for wheat, corn, rDearls and potatoes. 'However, variousi private companies are also now in- volved in seed production and distribution:  -16- Crop Ilain Distributor ,Jheat CaUa Agraria Corn CpX7a Agraria and Proacol Beans Caja Agraria and Proacol Rice Fedearroz Barley Procebada Cocao Fedecacao, Luker, via Nacional cle Chocolates, ThCORC, Enrrique IKoncayo Soybeans Proacol. Agroscya, IFA Sorghum Proacol, Purina Cotton IFA Tobacco IFr Potatoes Caja Agraria 55. Seed distribution presents a gradually iiproving picture. Future success -will depend in large part on tGhe success of the Colc.ibian A:ricul- tural Research Institute (ICA) and the new International Agricultural Center for Tropical Research (CLT) in developing more productive sec65 which cart be multiplied and distributed by public and private ageicies. 56. Herbicides and Pesticides. iNct one of the micdern irnIputs is essen- tial for all crops or all areas and .his is reflected in the LsLate-by-stal-e breakdown in Table 13, Appendix 1. Herbicide use is heaviest in the whe3t and barley areas of the highlands and in some of the new lcwland cropping areas of Bolivar, Cordoba, i(agdalena and iMeta. Insecticides and fung.LcideL are heavily used in potatoe production in Boyaca, Cundinamnarca, and J-,arino. 57. Trends in Fertilizer Use. Principal attention is giver, here to chemical fertilizer which is the rnost generally beneficial input and usually the most expensive for the farmer in terms of per hectare expenditure. Fer- tilizer use, expressed in nutrient terms, grew at an annual rate of 7.6 per- cent from 1955 through 1969. Durinrg the li60-64 to 1965-69 period, the growth rate declined slightly to 5.3 percent. However, nitrogen use con- tinued to increase at an average annual rate above 15 percent durinlg t>he full period. (See Table 14 of Appendix 1.) 58. Table 15 shows samaple survey data on fertilizer use by crops. Several significant facts stand out. It is not only the export crops that receive fertilizers; the most important consuner of fertilizers in terms of total area fertilized is a crop produced mostly by small holders principally for the internal market -- potatoes -- with more than 90 percent of the producing area fertilized. Next in line are barley anc wheat, crops also produced rmostly by small holders in the highlands. Tobacco is next, then cotton. Cotton is an interesting case in that there are two imiportanit planting periods each year. Only 17 percent of the main planting is ferti- lized, yielding an average of 1,500 kilos per hectare; whereas 59 percent of the other crop is fertilized, and yields close to twqo tons. In rice and sorghum too, there are notable differences in the areas fertilized in the two plantings with resulting differences in yields. Yuca, beans and corn -- traditional food crops -- receive very little fertilizor, A1thouj,l!  -17- they cover a vast land area. The lowest percentage of area fertilized is for an oil seeci crop -- sesame -- that has been grown in Colombia for many years but for which genetic material with high yielding potential has been lacking. 59. Table 16 in Appendix 1 complements the previous break- down by crops. The fertilizer use by Department shown here emphasizes the heavy usage by potatoes, barley and wheat which are grown almost entirely in Cundinamarca, Boyaca and Narifno. However, the usage in other areas has grown proportionally more than usage in these Departments. In total consumption of fertilizer, potatoes have a clear lead, with coffee and rice in second and third places. Sugar cane and cotton, with smaller total a-reas, are equal only to barley and wheat in the amount consumed. Much of the cotton, of course, is produced on new land where soil fertility problems are still not serious. Potatoes, barley and wheat, at the other extreme, are produced in the highlands, mostly on soils which have been severely depleted over centuries of cropping and frequently with special soil fertility problems. 60. Crude approximations of total fertilizer needs for the nation have been made by '[CA, using as a basis average recommended rates for the principal crops. These are expressed in terms of elemental nitrogen, P205 and K20. Summed up on a national basis, the following estimates are obtained: Nitrogen: 222,500 tons P205 : 135,000 tons K20 : 132,700 tons These must be considered conservative estimates. According to these figures, in 1969 Colombian farmers were consuming as much as 25 percent of the nitrogen, 35 percent of the phosphorous and 20 percent of the potash indicated as minimum national requirements. On the other hand, only 20 percent of the land in annual crops received fertilizer and about 16 percent of that in perennial crops. 61. If pasture land is also included, then the fertilized area is only about h percent of the total. Obviously there remains a large area which may require fertilization.  -18- 62. Response to Fertilizer. There is a serious knowledge gap in regard to crop response to the various fertilizer elements. The ICA soil testing laboratory has begun to calibrate its procedures by carrying out soil fertility trials in certain parts of the country. However, progress has been slow and in the meantime fertilizer recommendations are at best approximate. In addition much of the soil fertility work has been conducted with inadequate experimental designs; consequently, it has not been possible to make economic interpretations of the data. In the absence of response curves, general recommendations are made for use of mixed fertilizer, including all three cf the major elements to insure against a deficiency of any one. This has two important cost implications: first, the additional cost of unneeded elements, and second, the additional cost of mixing and transporting a bulkier product because mechanical mixes also include a certain amount of sand filler. The importance of these costs in producing a ton of 5-20-12 is shown in Table IV.3:  -19- Table IV.3 ESTIMATED BREAKDOWN OF PRODUCTION COSTS PER TON OF 5-20-12 FERTILIZER, MIXING PLANT OF THE CAJA AGRARIA I]N BOGOTA 1969 Quantity used Cost per ton Nutrient Place of' per ton of raw Cost for Raw M3terial Content Purchase, 5-20-12 Material amount used Kilos Pesos Fesos AmmoniLlm nitrate 26% N B/bermeja 193 1,442.001 $ 278.31 Triple superphos- 2/ phate h6% P205 Imported, 435 1,339.00- 582.47 Pbta SE; ium Chloride 60% K20 Imported 200 907.303/ 181.46 Sand 0 Local 172 51.604/ 8.88 Total cost of raw materials $ 1,051.12 Estimated cost of bags and bagging 172.00 Estimated cost of mixing 86.oo Estimated cost of interest on inventory5/ 52.36 Estimated total production costs $ 1,361.48 Mark-up to cover costs of depreciation, overhead, etc.6/ 118.52 Sales price F.0.B. Bogota $ 1,480.00 1/ Sales price of $1,32h.40 plus $117.60 transportation cost to Bogota. 2/ Retail price which includes 12% mark-up for triple super given as $1,500 per ton in Bogota; therefore price to mixing plant about $1,339. 3/ Based on $23.95 U.S. per ton F.O.B. Spanish port, plus $10.00 U.S. estimated ocean freight and unloading, plus $5.00 U.S. bags and bagging at port, plus $237.40 pesos transportation from Colombian port to Bogota; total $907.30 pesos. 4/ Estimated cost delivered to mixing plant. 5, Interest for 6 months at 8 percent per year, or 4 percent of production costs. 61/ The mark-up on a cost of $1,361.48 is 8.7 percent. Source: Caja Agraria  -20- 63. Fertilizer Supply. Colombia has been self-sufficient in nitrogen production for the past few years and, in fact, has excess producing capacity. The following figures show present and projected nitrogen production capacity for a 6-year period: 1967 66,000 tons 1968 74,000 tons 1969 92,000 tons 1970 119,000 tons 1971 148,000 tons 1972 160,000 tons Annual use of nitrogen is presently between 60,000 and 65,00o tons, about half of production capacity. 64. At the moment 85 percent of all phosphorus is imported and all of the potassium. The main domestic source of phosphorus is the basic slag from the steel mill at Paz del Rio. However, Colombia has ample deposits of rock phosphate, some of them high quality, which potentially may be exploited. A small amount of rock phosphate is now being crushed and applied directly to the soil. However, in general only 2-3 percent of the phosphorus in the crushed rock beccmes available to the plant and therefore it is generally not econamical to transport more than 100 kilometers. Consideration is now being given to utilization of the best deposits for production of P205. The agricultural policy concern in this will be to assure that farmers are not asked to subsidize an infant industry through prices above the world market. Fertilizers are to modern agriculture what power is to modern industry. Agricultural policy must insist on keeping the costs of basic inputs at moderate levels. 65. Fertilizer mixing facilities are aoparently adequate. In fact, there may be a surplus blending capacity. There are many small plants, generally producing low concentration mixes. There has been considerable criticism of the quality of mixed fertilizers in the sense that they do not contain the stated analyses. Part of this is a misunderstanding on the part of farmers who do not comprehend the commonly a,ncepted procedure of using sand filler in fertilizer mixes. The ICA has now been given the responsibility for supervising fertilizer quality. With high transportation costs, plus the cos"s associated with commercial blending operations there is a valid question of the advisability of continuing with many of the low analysis mixtures. There has recently been some reduction in the sale of low concentration mixes and an increase in the sale of straight urea. (Table 17 of Appendix 1.)  (f. Fertilizer CoE ts Related to Produce Prices. There are two main difficulties in making this comparison: inadequate data on product prices received by farmers, and lack of information on fertilizer prices at. the farm level. However, this is a crucial relationship for detarmining the changing profitability of fertil- izer use. 67. During recent years prices of fertilizers have increased in a series of jumps and on the average have risen more rapidly than farm produce prices. The relationship has varied considerably from year to year, but in general has deteriorated as can be seen in Table 18 of Appendix 1. 68. Farm level prices are not available for international comparisons; however, a comparison of retail prices at Bogota with those in the Washington, D.C. area shows Colombian prices 10 percent higher on urea (US$117 vs 106) and about 21 percent higher (US$88 vs 73) on mixtures such as 5-20-12. These relative prices place Colombian farmers at somewhat of a disadvantage. However, Colombian peso price increases should be less in the next few years as nitrogen production facilities begin to produce more nearly to full capacity. 69. In the case of phosphorus, reductions in world market prices are of direct benefit to Colombia as 85 percent of needs are imported. 70. Fertilizer Distribution Network. Fertilizer generally moves through three types of handlers in going from the primary nutrient suppliers to the farmer; mixing plants, distributors, and dealers. ABOCOL, the principal producer, does not have a distribution system but sells its output directly from its plant in Momonal to mixing plants, distributors, producer federations and diroectly to large farmers. 71. Ca a Agraria, with 12 warehouses in different zoneo of the country and 00 retail stores, is the largest dstributor. In 1966, it sold about one-third of all fertilizer in Columbia. The second largest was Productos QuLmicos Esoo (PQE) which had warehousea in 22 zones from which it distributed to various dealers. PQE closed out its distribution system at the end of I969. Esso is the principal shareholder in ABOCOL which w1l. continue production. PQE attributes the deaiion to close out dietribution to the high risks and small profit margin. They exlain that Shell, Hoechst and others olosd out distribution in 196- after nitrogen importations were discontinued, PQE indicated that its previous dealers would probably oontinue selling fertilizer but without credit underwziting and other support from PQE. What effect this will have on availability of fertilizr at looal retail points on time ftr planting is still not clear. Whether there will be a credit bottleneck is another question. Apparently some progress was mad@ in 1969 in reduolng distribution of low analysis  -22- fertilizers. IHowever, nearly 50 percen' of' COJa sales are st-ll - s iown six, 5-20-12. Another 15 percenL of Caja sales were 10-30-1. :nd 3.a1ic slag accounted for another 20 percent. These fertilizers are aoli bitLJ]- for potatoes in the Bogota, Pasto and Tuinja reg;ions w_here t1 'a a worked for a number of years. The Ca-a stores do iiot provitde creit, but the credit department of the Caja offers (redit for purc1kcse f fertilizers and other inputs. 72-78. Transportation of Fertilizer. The costs of moving iert<i..ier account for more than 20 percent of thie cost for ifany farmers. n is due in part to imports of phcisphorus and in part LO the locatiorn of the main nitrogen plants. About hO percent of all mix-3ed fertilizer is also rnade on the north coast of Colombia. Shiping is costly (see 'fable 19 of Appendix 1) and in the past hias frequently caused serious delays fI Celivery. Hopefully recent, purchases of new rollin,g stock wlill- 1ore this problem for present plantin-s. .Research and Dissemaination ofl' Knjulee 79. In attempting to attain high productivity in agriculture. :cod.on authorities are fully cognizant of t;he kcey i-portance of public sec-vs.: f or research and dissemination of knnoledge. However, in Colombia', the doevelop- m,-ent and testing of modern tecbunoloqc>r is complicateed by the ecology -- ahe vast number of soil and climates in the producing areas -- and biy the large numftber of crops grown in each ecological zone. As a resulr., plant breediing and varietal testing miust be cdonle with many different crops and at- mlrn< Ic- cations. Soil fertility work imlust take into account various crops in at- tempting to determine the op-timial fertilizer application for a given1 soil. And disease and insect protection programs rmust discover the onti ilummethods for controlling insects and diseases on mnany soils and climates, 3s musc, aLso the research on weed control. 80. To accelerate progress in this most import-an-o field, Soloriosia ha1s reorganized the Instituto Colo]nbiano Agropecuario (I,A) to give i-, the 1iiAjoC research responsibility in agriculture. ilmong other responsibiities it was given the work of the previous Animal Disease Frevention Inst,itute, the COL-L.on Developrmsent Institute and the Tobacco Z3velopment Institute. Equallyv iimpor- Ltant, the major e.xtension res-pons-bility has been transferred to ICA, tlhus assuring close ties between research and extension progranas. 81. The sharp increase in I''A's budget froni 1968 to '1969f is in large part a reflection of this added staff and responsibilities. lie tchnical staff on research totalled 5TC at the r-glni n, , o'73, which is Qiov'e _tI n double the nubnber employed in 19600. The annual budget for 1970 is 137.6 million pesos, a fourfold increase on t'he 1968 budget. i4any new exp)er i;ert a stations have been established and -the earlier criticism thaL too f'uch at- tention was being given to temLlerate crops has been heeded and the eConphssis now is more towards tropical crops. For e,xarle, 60 percent of the technical staff as well as 60 percent6 of the 1970 budget is now- being allocat-ed to th.e lowlands and warmer resgions. Tables 20 and 21 of appendix 1 g-ive the allo- cation of technical staff to th.e tnerate and tropi c-a,. e nerinental stattot s over the past five ycers, as well as t>5C' increasing fJntallcial proviL ns that have been made over u.1his periLoc.  (X. ICA's pro-ramJ of investigations covers breeding and selection of all Lhe major crops as well as studies of disease, pes-t and weed control mi,easurer. 'lore a`tention is being given to irrigation, agricultural. engi- reering, animal husbandry and farm rianagem,lenit practices. 83. Although soil fertility requirements are being studied on the main crops at most stations, there is insufficient experimentation at the farm level to t'est the results thus obtained. Consequently there is as yet insufficient kno.iledLe abouL the fertilizer needs of the main groups of soils in the cotmtry and consequently it is not possible to makce precise recomnendat.ions on optyiun fertilizer use. A pre-investmnent study on this aspect seems apprcriate and if carried out should yield much needed basic information on the optimirumi combination of elements, levels of application, desirable plant population, etc., for the major ecological conditions and crops of Colomrbia. This could then provide a sound economic basis for greatly expanded investment in fertilizer use. 84. In addition to ICA's program, two private organizations undertake so:ie a-ricultural research. 'T'he National Coffee Federation has for a long time provided funds for work on coffee, and to a certain extent on crops or enterpri'ses which could be used for diversification away frorml coffee. The Institute of Technological Riesearch also has projects related to agriculture. O)ne recent study ilas been on `the possibilities of using surplus rice for makcing flour to miix with wheat in the baking industry. 35. The range of areas and crops covered by research would appear to be reasonable in view of past budget limriitations. The total investment in research is still srmall and ahould be enlarged as rapidly as corpetent per- sonnel can be trained to tackle the imost promising leads for iraproving the eff'iciency of production. 86*. ICA's extension activities started in 1967 when it -took over the !iLlnis'try of iAgriculture's 16 extension agencies. This number was expanded to Llk anid recently has been increased to 58. Each agency com-iprises a basic esnazlisimielt of either two agronomists, or one agronomList and one livestock specialist or veterinary officer, or in areas largely devoted to livestock, of' -twio livestock specialists. In addition, each agency has a home economics adviiser. Attached 'to this nucleus of three professional staff is a team of 5 "practicost or technicians who have had a technical high school education thouig-h in some instances they may also be graduate. 27,'. In addition to ICA's 58 extension a,gencies, there are other orga- ni.ations whichn carryr out technical assistance, usually in conjunction wi'h Llaf, suxpervised credit made available tlhrough IICORA, the Caja Agraria and COFiIA(GMl. In these cases the extension staff may either be permanent emn- pi-yees of the organization or independent agricultural consultants engaged -,o provide technical assistance. These consultants are registered with and are supervised 1,y ICA. The Federacion ;Nacional de Cafeteros also has its ex,ension service organization, wsith over 500 agronomist's and "practicos"; and regional developoment organizations such as the CVC have between 40 and 50 e:-tension workers. Extension-typre services are also provided by the nat,ional fed'erations of cotton, rice and cocoa growers and by various firmns setlling agricultural in-puts such as plant pro-ltection products and fertilizers.  88. The supervision rvfall the above techniical assisEance eroevided b the various organizations is vestced in I6A and "or this pur ose t'h oui-- try has been sub-divided into eig,ht regions. EiC of the. -os iE un a regional director who is respoilsible to the t direcGor general i;n }o rot,aI together with Tis plannirn `echnical, developrriental, and one;ationl a s- sistants. Wv2here thlere is any call for stziecialist advice on 5sore ia rtic u:iar crop, pest or disease, the probler, is direc-ted o the naares` o a,o!oSt ap- propriate exerixnental st ation tlo be dealt with by- the spec ' .li.s- in particular crop or by tie resident entomologist or plant; pIC 89. No accurate iiformation is available but- it is together the extensioni s.aff and technical assi'stance persoruieu. nu.j to-oi.n ls nearly 2,000 professional anjd rlon-professionall ex.tension jor' ors. i'. . se provide a variable type of" servicecl frorr iving fair'-ly 21 1 11Qfl . .ec' advice at one end of the rang e, to a detailed examnation ot in resouIceI and potentialities for drawilng up farm budgets and croppin :o -r.-m.s ait ' other end of the range. 90. If the cadre of exstension workers in the field is a essunid tLo noe 1,500, and the number of farilms in the country 1,5 ?'lillion,!/ 1 1b?;l ;;ould only be one ext. ension wor1.er available for every 1,000 fails. icE e. would be physically imqpossible to visit this number of far;rjE in do) Ce cu0 of a year, it is obvious that ain adequa'te density Oft on workers has not yet been achieved. Despite tlle considerable exoansion triat has-.3: place recently this service will need to be further sLreng .i i1r V . ". oi tll.ir . if the example of the Corfee Federation and of INCORA is to be c),ll D;,C(. ITI the case of the former, the Federation's 512 e--uension iwDrlPkers lai-l to I-have visited 88,000 families in 1965, an average of 172 ner 'zor.r ILJdIs1'S loan supervisors on the oth ler hand e:-pect to iake aout 5* calls ea ! ;onti in the course of supervising outstandling loans. .dlereas loan slvpervsicn and the special needs of the coff.'ee g,rower demnand such an irlLen-iv,' c the more general requirements of an advisory service could be at higher ratio of farn.ers to advisory staff, say of. the order of 3c. I each extension wjorker. Price Policy 91. The Colombian Goverrurient takes an ac ive role ri coJ rirn 2 in price policy with other agriculi3ural policies .i thoso ca-. w1: Ie ',ec)I goals have been defirecd. The forn.1ulatiorn of" a_rcultulral price p1if:y i. carried out jointly by the 71ational Superintendenicy ''or Pri.:es, t1, .l Planning Department, the inis-try of A-,ricu'lture arl,3 -'h" Inst-.tute .or Cro. and Livestock MIarketing (EDEMA). 92. The National Superintendency regulates prices on the .3gril:ulturall. products (a) for which the goveruTni -nt has ''compulsory absorption ciuotas? (e.g. cotton, oil cake, rubber), or ( w) where there are produ,ucer associatiic,ns that control a significant part of the i-narket_. The markets for these products are considered to have characteris-ics of- monlopoly in production cind/oc *3- tribution (e.g. sugar and cotton). For those products whIere Liher(-- al, rj large number of unorgan-ized producers but the 'ist,i JOw. ion is cont[ro.L1ed K I/ DA1NE samrple survey, 1968j. 2/ IICA-CLDA Organizacion Admiinistrailva (ieL Sect;r Agropecuar-.. Jt- Colombia, 1966.  monopolies, the Superintendency fixes processing margins leaving producer ,prices to mrove freely 'e.g. milk and maeat). rfhe Superintendency does not intervene in rem